Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

African Gold Group, Hummingbird to jointly develop Malian gold

Published 2017-09-27, 01:18 p/m
© Reuters. African Gold Group, Hummingbird to jointly develop Malian gold
TRE
-
HUMR
-

LONDON, Sept 27 (Reuters) - African Gold Group AGG.V and Hummingbird Resources HUMR.L on Wednesday said they had conditionally agreed on an $6.4 million deal for Hummingbird to operate the Kobada Gold Project in Mali.

In two separate statements, African Gold Group said it was selling a 19.99 percent stake to Hummingbird Resources for 8 million Canadian dollars ($6.44 million) and at the same time would allow Hummingbird to acquire half of the Kobada project.

"Hummingbird provides us the financial capacity to develop the Kobada Gold Project and we are also gaining a partner with an operational presence in Mali," said Stephan Theron, Chief Executive Officer of AGG.

Hummingbird said the deal would give it the right to operate the Kobada mine and would enable it to increase annual gold production to more than 150,000 ounces by year by around 2020.

The plan is to truck concentrate to Kobada for processing at Hummingbird's Yanfolila project, which is scheduled to produce its first gold in December.

"This high-grade concentrate would have a material increase to our annual production rates and could add up to an additional 50,000 ounces per annum to our existing average life of mine production of 107,000 ounces," Dan Betts, CEO of Hummingbird said.

Betts told Reuters this month he was looking for opportunities to offset depreciation of assets as Hummingbird brings online the Yanfolila project in Mali. = 1.2426 Canadian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.